MIS as an Instrument for

Organizational Change

• Change is the law of Nature

• online DL, Digital India

• STEPS

• Identify the core activities in the systems

development process.

• Evaluate alternative methods for building MIS.

• Compare alternative methodologies.

• Identify and describe new approaches for system-

building in the digital firm era.
 MIS as an Instrument for Organizational Change

Ex.-A New Ordering System

• Problem: Inefficient manual procedures, High error
rate.
• Solutions: Eliminate manual procedures, Track orders
automatically & design new ordering process.
• Increased efficiency and reduced errors.
• Demonstrates IT’s role in updating traditional
business processes.
• Illustrates digital technology as the focus of
designing and building new information systems.
 MIS as an Instrument for Organizational Change

• Four kinds of structural organizational change

enabled by MIS
1. Automation
• Increase efficiency, replace manual tasks
2. Rationalization
• Streamline standard operating procedures
3. Business process reengineering
• Analyze, simplify, and redesign business processes
4. Paradigm shifts
• Rethink nature of business, define new business model, change
nature of organization
 Management Information Systems

Systems as Planned Organizational Change

Organizational Change Carries Risks and Rewards

The most common forms of organizational change are automation and

rationalization. These relatively slow-moving and slow-changing strategies
present modest returns but little risk. Faster and more comprehensive change—
such as reengineering and paradigm shifts—carries high rewards but offers
Figure 13-1
substantial chances of failure.
 Management Information Systems

Systems as Planned Organizational Change

• Steps in Effective Re-engineering

• Determine which business processes should be improved
• Strategic analysis
• Pain points

• Identify and describe existing process

• Identify inputs and outputs, flow of products, network of
activities and buffers, resources, information structure and flow,
process owners and decision makers
• Understand how much process costs and how long to perform
• Process cost, process time, process quality, process flexibility
 Management Information Systems

Systems as Planned Organizational Change

• Steps in effective Re-engineering (cont.)

• Determine which methods can improve process
• Replace sequential steps with parallel
• Eliminate buffers (decision delays and inventories)
• Transform batch processing and decision making into continuous
flow processes
• Automate decision tasks wherever possible
 Management Information Systems

Systems as Planned Organizational Change

• Quality management:
• Fine-tuning business processes to improve quality in their products,
services, and operations
• Total Quality Management (TQM):
• Achievement of quality control is end in itself
• Everyone is expected to contribute to improvement of quality
• Six sigma:
• Specific measure of quality
• 3.4 defects per million opportunities